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On Ubuntu 13.04, 64 bit, VUE 3.2.2 the Formatting Palette opens in a very tiny shape, and there doesn't appear to be any means to resize it. Initially, other windows open similarly, but there is a resize handle in the bottom right corner. There is no resize handle for the Formatting Palette, so it is impossible to use it. Any work around possible?

Just recently ran into this myself. Running OS X 10.8.5, but saw it in 10.7 as well.

Not aware of a fix, but did find a workaround. In the menu, select VUE > Preferences. There is a "Save Window States" list item under the Windows category in the left column. Select it. Press the "Reset" button to "Reset default window sizes and locations".